Tuesday, December 31, 2013

Hiring a Bookkeeping Service-The Perfect New Year’s Resolution!

Perhaps you are a business owner who knows it’s time to bring in a bookkeeper but you just aren't sure when to pull the trigger. The perfect time is right now! The start of a new year is the ideal time to hire a bookkeeping service. Being able to start at the beginning of the year means there isn't an up front time commitment to catch up prior months. It’s also a great time for the bookkeeper to assist setting up accounts payable and receivable systems. As business owners, the start of a new year is also when we commit to growing our business and expanding. What better way to do this than by freeing up the time you've spent doing your own bookkeeping?  Let the experts take care of the books, while you take your company to new levels.  So while you’re pondering how to improve it 2014, make hiring a bookkeeping service (and if you’re in Atlanta, specifically BBW Bookkeeping) your top resolution!

Thursday, December 12, 2013

Who Gets a 1099?

Before you know it, January will be here and that means it will be time to issue 1099s. As a refresher, below are some general guidelines on who to issue 1099s to:

  • All sole-proprietors/independent contractors paid more than $600 in fees (Not Employees)
  • LLCs paid over $600 with the exception of LLCs who are taxed as a C or S Corp
  • Attorney Fees
  • Rent over $600

A few other reminders include:

  • Make sure to buy 1099s for the current year. The year is printed on the forms and previous years are not accepted by the IRS.
  • Buy 1099 forms early. You can buy them from any office supply store but they tend to run out quickly.
  • Complete the form per the instructions. There are separate boxes for rent, attorney fees and contractor fees.

We suggest looking through your books now to make sure you have W-9s for everyone you are required to submit 1099s for. If any information is missing, request it as soon as you can. In case of an audit, you are fined per 1099 not filed. As a good rule of thumb, request a W-9 for everyone you write a check to just to be safe. 

Monday, July 8, 2013

The Start-Up Part 1

We often get calls from start-ups who have no idea where to begin with their finances. One of the common mistakes we see are not properly setting up the business and not opening a business checking account. We’ll discuss the business set up later and today will focus on the importance of setting up business checking.
Setting up a separate business account is vital. Tracking income, expense and owner’s draws are a nightmare when mixed in your personal account. This makes understanding if your business is profitable almost impossible. And when your bookkeeper does need to set up your books, it will much more time-consuming (read as costly to you unfortunately). Your best bet is setting up a business account from the get-go. If cost is the deterrent, many banks offer a free account for the first few months and some are completely free. Below are a few we like for the cost:

1.       1. Fidelity-Free checking with an opening balance of $50. https://www.lionbank.com/banking/business/checking

2.      2.  PNC-Free checking with up to 200 items a month and $100 to open.

If you are using their merchant services, some banks such as Wells Fargo (https://www.wellsfargo.com/biz/products/accounts/checking/0 and Bank of America (https://www.bankofamerica.com/smallbusiness/checking-accounts.go waive the fees.

Of course, it might be easier for you to open a bank where you already have accounts even if there is a fee. But the important thing is to open one! It will make your bookkeeping much cleaner even if you don’t engage a bookkeeper until later. Many bookkeeping software such as QuickBooks offer bank download which is a real timesaver. But this only works if your accounts are separate.